Finding Text
FINDING 2023-004
Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting
Federal Agency: Department of the Treasury
Federal Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds
Assistance Listings Number: 21.027
Federal Award Number and Year (or Other Identifying Number): FY 2023
Compliance Requirement: Reporting
Audit Finding: Material Weakness
Condition and Context
Recipients are required to submit quarterly or annually Project and Expenditure (P&E) reports to
the U.S. Department of the Treasury (Treasury). The reporting periods, as well as the respective due dates,
are based upon type of recipient and its population, as well as the recipient's allocation amount. Information
to be reported includes projects funded, expenditures, and contracts for the appropriate reporting period.
The County was classified as a county with a population below 250,000 residents that received an
allocation of less than $10 million in COVID-19 - Coronavirus State and Local Fiscal Recovery Funds. As
such, the P&E report covering the period from April 1, 2022 to March 31, 2023, was required to be submitted
to the Treasury by April 30, 2023.
The P&E report was submitted in April 2023, as required; however, there were no internal controls
in place that would likely be effective in preventing, or detecting and correcting, noncompliance related to
the P&E report. One employee prepared and submitted the report without evidence of an oversight or
review process.
The lack of internal controls was systemic issue throughout the audit period.
INDIANA STATE BOARD OF ACCOUNTS
19
WHITE COUNTY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
(Continued)
Criteria
2 CFR 200.303 states in part:
"The non-Federal entity must:
(a) Establish and maintain effective internal control over the Federal award that provides
reasonable assurance that the non-Federal entity is managing the Federal award in
compliance with Federal statutes, regulations, and the terms and conditions of the Federal
award. These internal controls should be in compliance with guidance in 'Standards for
Internal Control in the Federal Government' issued by the Comptroller General of the
United States or the 'Internal Control Integrated Framework', issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO). . . ."
Cause
The County did not implement a system of internal controls over reporting.
Effect
Without the proper implementation of an effectively designed system of internal controls, errors
could occur and remain undetected. As such, the County cannot ensure that the reports submitted are
materially accurate and correct.
Questioned Costs
There were no questioned costs identified.
Recommendation
We recommended that management of the County design and implement a proper system of
internal controls, including policies and procedures to ensure that the County provides the Treasury with
complete and accurate information for the P&E report.
Views of Responsible Officials
For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.